THE TAX REFORM DECADE
With all the other distractions, unrest and uncertainty in our lives this year, one thing of certainly from that notorious “death and taxes” line hit home this week.
Brian Balfour at Civitas did an excellent job reminding us what an extraordinary job the reform majority in the legislature did to reduce the tax burden on North Carolina taxpayers over the last 10 years.
The big reminder – in 2010, under the old tax and spend leadership of the liberal machine, North Carolina was among the highest taxed states in the union and suffered from the country’s 11th worst business tax climate. As a result, jobs were scarce. North Carolina was not an attractive place to do business.
A decade later, as Balfour described: “Today, North Carolina’s business tax climate ranks as 15th best in the nation, a tax climate that has helped North Carolina rank as Forbes’ “Best State for Business” for three consecutive years.”
When the COVID-19 impact dies down, that low-tax business environment should be a big help in helping get us back on track with our economy.
And for families and individuals, the change in tax rates in the last 10 years has been remarkable. We went from 2010 having the highest marginal personal income tax rate among our neighbors, and second highest combined state and local sales tax rate…
…to the second lowest personal income tax rate (only because Tennessee has no income tax), and second lowest sales tax rate.
That seismic shift in tax rates will hopefully be a great advantage as we pull out of the COVID slide and get our state back running again. Thank you to the reform majority for having the courage to bring real reform when the liberals said it couldn’t be done and reduce our taxes.